Commentary and analysis on markets, personal finance, and wealth building from a contrarian perspective. "I believe in the discipline of mastering the best that other people have ever figured out. I don’t believe in just sitting there and trying to dream it up all yourself. Nobody’s that smart."
— Charlie Munger

Pages

Friday, March 11, 2016

Cyprus banks continue to get stronger as economy improves

But John Hourican, the chief executive of the Bank of
Cyprus, told CNBC on Thursday that following an economic recovery in Cyprus (it
has just exited its bailout early and with money to spare) Russians and
Ukrainians were still depositing money in the country's financial system.

"It's a country in transition, the business services
and wealth preservation engines that exist in Cyprus are still there," he
told CNBC in Nicosia. Although the level of Russian money in the country had
"gone down significantly", he said.

"If we look at international business about a third of
those who are with us are Ukrainian and Russian in terms of genesis but if you
look at those businesses they are real trading businesses.

(skip)

Hourican said that Cyprus' banking system was well on its
way to recovery although there were still issues to iron out.

"I think there are enough positives that are real for
us to believe the recovery is underway," he said.

This is still a long term story but my view is that as things improve a revaluation will take place. You can still buy Bank Of Cyprus for 30% less than turnaround expert Wilbur Ross paid for his shares.